Range Resources. Longterm V Short-term?

Range Resources/African oil concessions superi...

Company Maker.

Lot of emails asking for an opinion on the latest news from Range. While long-term it can only benefit the company short-term it’s a kick in the teeth for Privateers as evidenced by the fall in the sp. I like Range Resources they have some very good oil assets which when proven up will turn the company into a substantial oil producer todays RNS is just another forward step by Landau et all in company strategy and should not be seen as a step backwards. It’s the natural evolutionary process of small E+P’s to fund asset buys with discounted placings to institutions/high net worth individuals while the Private Investor doesn’t get a look in. That’s because Privateers are always divided there’s no cohesion amongst the PI Diaspora and companys know that small Private Investors can be fobbed off. Hence why the new web-site will seek to unite genuine Investors into a cohesive force that will demand company recognition/information. One PI with 70,000 Range shares will get nowhere speaking to the company however 300/400 PI’s with collective holdings focused into one voice will. Make no mistake this deal began months ago. Range are targeting huge OIP figures in Georgia/Puntland etc. They are being closely watched from within the city of London any success in either big plays will drive the sp upwards. Now they have 100% of Trinidad which needs to be weighed against the cost of the placing.  It looks good business to me long-term.I’ve said previously Range are an investment with quality assets. (producing and exploration) If you’re in here then stick it out and look to the future if you’re unhappy then sell up and move on it’s your money! They will go Major it’s a question of time coupled with a successful drilling and as always the drivers of the sp here are expectation and potential look for a 50p minimum as they gear up for Puntland and Georgia drills with more good news from the USA .



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  1. wing commander says:

    Well a total no brainer for me,if you intend holding for more than a few weeks then this is the best news possible as far as im concerned,even taking the worse case figures from trinidad its about as good a bargain as you will find..Of course the T traders will be getting burnt who opened positions on the asx suspension (i opened one myself) but thats the price we pay …However i dont think ive ever been so delighted to be £6k down today..

  2. Investor401 says:

    In my opinion it’s a masterstroke.

    An 8% dilution to gain a whole new area of exploratory upside, plus ensure the company has cashflow to fund their other projects (600bopd now rising to 4000bopd within 3 years).

    It’s a no brainer IMO. At 4000bopd you’re looking at $35m income a year. At 10x earnings that’s a value of $350m. Add the Texas stuff in there and you get a value that underpins the share price at the current levels of 20p.

    So you’ve got a guarantee (well, as close to a guarantee as you can get in the stock market) of getting your money back in 3 years if the exploration doesn’t go to plan in Georgia, Puntland, and the Herrera Formations. If it does go well however, you’re looking at 1000%+ gains.

    For all long termers this company is now derisked and I for one am thrilled to bits with the news, as an investor who plans to hold for a number of years yet, knowing that my money is pretty safe but still has exposure to significant upside. The drop today mean nothing, and even if it drops to placing price of 17p it still is irrelevant. We’re getting a free shot at mega-money here.

    My advice- buy and hold for 3 years. By then they’ll have been loads of exploration in Trinidad, Georgia, and Puntland (hopefully offshore Puntland will have started by then too). They’d have to be the unluckiest little explorer in the world to not find anything. But even if that scenario happens, production will still ensure your cash is returned even on total failures with the frontier plays.

  3. B0GiE-uk- says:

    Maxed out this years ISA @ 20.5p a share. Long term hold for me. Here’s hoping for 50p by Xmas. Only other banker at the moment is XEL. GLA!

  4. Alan says:

    RRL good day to top up, I agree and have done.

    Dan, some time ago you were upbeat about Petrolatina PELE. They seem to be at a good entry point but lack marketing skills. Too quiet over there and dropping despite plans for low risk drilling later this year. Has long term view changed?

  5. soontobecolonel says:

    how will the pooling of our assets work DAN, you mean you’re gonna represent 3-400 shareholders & demand information based on voting power? Doesn’t that just bestow upon you the power of the individual shareholders?

    • Brokerman says:

      Certainly not. If we have 400 shareholders whose combined holding is lets say 10% etc Then YOU the members organise contact with the company. YOU the members decide who those representatives are. Not the new site. We running the site assist with members representations through the elected representatives of stock-holder groups. All site or company visits/interviews/research should be hammered out through the forums.
      Simple really. As a cohesive voting block depending on the percentage of that block members could seek to have representation on the Board.

      Collectively there is influence for Private Investors. Individually you are pissing in the wind.


  6. worsleybird says:

    Have some balls people – my God what do you want jam on it!
    Have had some disasters with CAZA and EOG lately, but this latest reaction to good news just takes the absolute biscuit.

    Topped up with £10K today and holding for the long term.

    No problems with excellent management or ability to keep us fully informed – a right cracker.

  7. B1GGZ says:

    Totally agree with investor401, that holding on to RRL for a couple of years will be life changing. This will at very worst case scenarion IMO also break you even after all the drilling if they found nothin ( and again imo VERY UNLIKELY ). I see this share well im the ££s bracket within 2 years and even near to £1 by Xmas, im that confident.

    Im already dreamin of buying the latest RANGE ROVER and personalising it with the reg number as “RANGER” .
    Hows that for optimism.

    • Investor401 says:

      B1GGz, I’m thinking about £5 (market cap of £10bn) in 3-4 years time.

      Onshore Puntland sold to the Chinese for a couple of billion, Offshore Puntland drilled and production facilities slowly being put in place, 7-8 Herrera targets drilled, 10+ wells in Georgia….it’s all very good.

      Tullow Oil has a market cap of £10bn and that’s only 1.5bn barrels of recoverable reserves (plus whatevers priced in for exploratory upside). RRL could easily surpass that figure.

      It’s a no-brainer right now with a fully diluted market cap of £350m or so. You get all your cash back in 3 years if everything fails, or you get a 10-20 fold return if the exploration is a success. I’ll take those odds anyday.